Here are some signs that it may just be a good time buy Tampa real estate:
The government will pay you to buy a house
Poorly targeted or not, there is a tax credit for both first-time home buyers and move-up buyers. First timers can get a credit up to $8000, while movers-up can get a $6500 credit.
Interest rates at lowest rates ever (Freddie Mac)
This week’s average mortgage interst rate as published by Freddie Mac is the lowest it’s been since Freddie began tracking the data in 1971…..once again…1971! Lowest mortgage rates in 38 years. But hold on. The Federal Reserve (government) has been buying most of the Fannie/Freddie mortgage backed securities, but that’s due to end in the 1st quarter of 2010. Many economists believe this will trigger a rise in rates. The government can’t keep buying these securities. If rates rise a 1/2 point, that’s $76 more per month on a 30 year fixed of $250k (as compared to a 4.71 rate).
Prices seem to be stabilizing
The average price of homes sold actually rose in Tampa in during the summer months, but retreated a little in September according to the Case-Shiller Home Prices Index. If you follow those numbers (I do) the index had been dropping steeply since July of 2006. Hopefully we’ll see some stability (flatness) going forward:
Big lenders believe home prices will remain mostly stable
The CEOs of Bank of America and Wells Fargo seem to believe prices will remain stable for 2010 and that we won’t see any big price plunges. These 2 lenders did almost half of all home purchase and refinance loans in the 3rd quarter of 2009, so you have put some faith in their opinions (maybe they’ll loosen up on lending guidelines as a result of this new found faith for 2010).
Inventory of Tampa homes for sale has plummeted in 2009
From an inventory perspective, there was no better time to buy a Tampa home than in early 2008 when the number of residential real estate listings in Tampa reached a whopping 9100. But much of that has been chipped away, falling throughout 2009 to 5756 listings for sale as of today. But prices have retreated substantially since that peak as well. And let’s be real: While inventory is much less than it was 18 or even 12 months ago, we still have a surplus of listings relative to years past. It is still a strong buyer’s market from a supply perspective.
So it seems a good opportunity right now to buy a home. Prices and availabilty of homes may remain flat, but that record low interest rate may be short lived in to 2010.
We represent Tampa home sellers and Tampa home buyers.
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